News Summary: Australia Cuts Key Interest Rate
By The Associated Press
THE MOVE: Australia's central bank cut its benchmark interest rate by a quarter percentage point Tuesday, taking it to 3 percent. That's the lowest level since April 2009, during the global financial crisis.
THE REASON: Slower growth in China, uncertainty over the U.S. economic outlook and stubbornly weak conditions in Europe are hurting the Australian economy.
THE BACKGROUND: Chinese demand for mineral resources, particularly iron ore, fueled a mining boom in Australia during the global downturn. But with growth slowing in China and commodity prices lower, economists worry that Australia's mining boom will soon end.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts